§ 5-1-14-14 — Loans, expenditures, and issuance of bonds for economic development

Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 14. (a) Notwithstanding any other law, a
municipality may sell the municipality's interest in any notes payable
to the municipality at a negotiated sale.
(b) A county or municipality may establish a revolving fund from
grants, the revenue received by the county or municipality under IC 6-3.6-9 and allocated for economic development purposes under IC 6-3.6-6-9, the proceeds of the sale of notes, or the proceeds of bonds
issued under this section and IC 36-9-32. The county or municipality
may loan the money in the revolving fund to any borrower if the county
or municipal fiscal body finds that the loan will be used by the
borrower for one (1) or more of the following economic development
purposes:
(1) Promoting significant opportunities for the gainful
employment of the county's or municipality's residents.
(2) Attracting a major new business enterprise to the county or
municipality.
(3) Retaining or expanding a significant business enterprise in the
county or municipality.
(c) Activities that may be undertaken by the borrower in carrying
out an economic development purpose include expenditures for any of
the following:
(1) Acquisition of land.
(2) Acquisition of property interests.
(3) Site improvements.
(4) Infrastructure improvements.
(5) Buildings.
(6) Structures.
(7) Rehabilitation, renovation, or enlargement of buildings or
structures.
(8) Machinery.
(9) Equipment.
(10) Furnishings.
(d) Local governmental entities may borrow under subsection (b) if
the local governmental entity's jurisdiction includes the geographic area
within the boundaries of the county or municipality that established the
revolving fund. Notwithstanding any other law, the following
provisions apply to the borrowing:
(1) The county or municipality that established the revolving fund
and the local governmental entity borrower may each authorize
the loan from the revolving fund and the issuance of notes
evidencing the loan by resolution. In each case, the resolution
shall be adopted by the body with control over fiscal matters.
(2) A resolution adopted under subdivision (1) must approve:
(A) the term of the loan;
(B) the interest rate;
(C) the form of the note or notes;
(D) the medium of payment;
(E) the place and manner of payment;
(F) the manner of execution of the note or notes;
(G) the terms of redemption;
(H) the funds or sources of funds from which the note or notes
are payable, which may be any funds and sources of funds
available to the borrower; and
(I) any other provisions not inconsistent with this section.
(3) The notes and the authorization, issuance, sale, and delivery
of the notes are not subject to any general statute concerning
obligations issued by the local governmental entity borrower. This
section contains full and complete authority for the making of the
loan, the authorization, issuance, sale, and delivery of the notes,
and the repayment of the loan by the borrower, and no law,
procedure, proceedings, publications, notices, consents,
approvals, orders, or acts by any officer, department, agency, or
instrument of the state or of any political subdivision is required
to make the loan, issue the notes, or repay the loan except as
prescribed in this section.
(4) The notes issued by a local governmental entity borrower are
exempt from taxation for all purposes and are exempt from any
security registration requirements provided for in Indiana statutes.
(5) Notes issued by a local governmental entity borrower under
this section are obligations for all purposes of this chapter.
(e) A municipality may issue bonds under IC 36-9-32-7(b) through
IC 36-9-32-7(j) for the economic development purposes listed in
subsection (c) and may repay the indebtedness solely from revenues
derived from the repayment of any notes, including notes evidencing
loans made under subsection (b).
(f) To the extent a revolving fund under subsection (b) is funded
from:
(1) revenues received by the county under IC 6-3.6-9 and
allocated for economic development purposes under IC 6-3.6-6-9;
or
(2) repayments of principal and interest on loans from the
revolving fund that were funded with revenues described in
subdivision (1);
money in the revolving fund may at any time be transferred in whole
or in part to the unit's economic development income tax fund, as
determined by ordinance of the unit's fiscal body.
(g) The general assembly finds that counties and municipalities in
Indiana have a need to foster economic development and industrial and
commercial growth. The general assembly finds that it is necessary and
proper to provide an alternative method for municipalities to foster the
following:
(1) Economic development.
(2) Industrial and commercial growth.
(3) Employment opportunities.
(4) Diversification of industry and commerce.
It is declared that the fostering of economic development under this
section for the benefit of the general public, including industrial and
commercial enterprises, is a public purpose.

Legislative History

As added by P.L.35-1990, SEC.4. Amended by P.L.27-1995, SEC.5; P.L.197-2016, SEC.1.